GET DAILY SIGNALSFortinet (FTNT, $46.17) tops Q3 earnings expectations; disappoints on billings guidance
Fortinet Inc.’s quarterly earnings and revenue surpassed analysts’ expectations. However, the cybersecurity company issued billings guidance lower than expectations.
Fortinet posted third-quarter adjusted earnings of 33 cents a share, up from 20 cents a share a year before, and well-above the 27 cents a share expected by analysts polled by FactSet. Revenue rose to $1.15 billion from the year-ago quarter’s $867 million, and surpassed the FactSet consensus of $1.12 billion.
For the fourth quarter, Fortinet is expecting 38 cents to 40 cents in adjusted earnings per share, compared to the FactSet consensus 35 cents. The company projects $1.275 billion to $1.315 billion in revenue, vs. $1.12 billion expected by FactSet consensus.
Fortinet projects $1.665 billion to $1.720 billion in billings, lower than analysts’ forecast of $1.740 billion (as indicated by FactSet poll).
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Aroon Indicator for FTNT shows an upward move is likely
FTNT's Aroon Indicator triggered a bullish signal on October 22, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 221 similar instances where the Aroon Indicator showed a similar pattern. In 166 of the 221 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 42 of 58 cases where FTNT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 72%.
FTNT moved above its 50-day moving average on October 19, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where FTNT advanced for three days, in 229 of 332 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
FTNT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for FTNT moved out of overbought territory on October 13, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In 21 of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at 62%.
The Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FTNT as a result. In 59 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 68%.
The Moving Average Convergence Divergence Histogram (MACD) for FTNT turned negative on October 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 56 similar instances when the indicator turned negative. In 39 of the 56 cases the stock turned lower in the days that followed. This puts the odds of success at 70%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FTNT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 3 (best 1 - 100 worst), indicating outstanding price growth. FTNT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 6 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron SMR rating for this company is 12 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (82.345) is normal, around the industry mean (15.971). P/E Ratio (60.867) is within average values for comparable stocks, (60.982). Projected Growth (PEG Ratio) (1.939) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.208) among similar stocks. P/S Ratio (17.065) is also within normal values, averaging (103.889).
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General Information
a provider of threat management and network security solutions
Industry ComputerCommunications
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